However there is plenty of evidence that the velocityof money does drop, especially during a recession.
FORBES: The Core Inflation Fudge
2.
The housing crash, banking crisis and recession caused a sharp drop in the velocityof money.
FORBES: Inflation Only Gets Out of Control if You Let It
3.
The Fed has little or no influence on the velocityof money short of raising short-term interest rates to a level that causes an economic slowdown or recession.